Small dip in forecolsures statewide in August

Foreclosure activity rose in Norfolk County in August while declining in Plymouth County, according to a report.

Steve Adams

Another 146 property owners south of Boston lost their battles with foreclosure in August, despite a new Massachusetts law that was designed to stem the tide.

Foreclosure deeds rose 16 percent from the previous year to 59 in Norfolk County, according to a report Thursday by The Warren Group of South Boston.

Statewide, foreclosures declined 2 percent in August compared with August 2007.

But some regions continued to see rising foreclosure activity. Barnstable County led the state with a 37 percent increase, followed by Worcester County with a 17 percent increase.

Plymouth County saw some relief in August, with foreclosure deeds declining 19 percent to 87.

“There’s some speculation lenders are being less aggressive (pursuing foreclosure),” CEO Timothy Warren Jr. said. “It’s more likely they’re not pushing as hard in the hopes that a decent offer or a turnaround in the real estate market will come.”

Starting in May, a new state law required lenders to give homeowners 90 days to come into compliance with their mortgage agreements before filing a petition to foreclose.

Observers had expected a big spike in petitions in August, as the 90-day grace period expired. But foreclosure petitions only rose from 502 in July to 943 in August, well below the 3,112 petitions filed in August 2007.

Nonetheless, Attorney General Martha Coakley said this month there is little evidence the new law is doing much to encourage lenders to help delinquent borrowers keep their homes.

Only 144 modified mortgages were filed in the state over a three-month period after the law took effect, compared with 4,700 petitions to foreclose and 4,300 foreclosure deeds.